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Mad Money

News/Business. (2013) New.

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China 16, Us 11, Cramer 9, Washington 8, U.s. 7, Jim 6, Booyah 4, Ba Ba Ba 3, United States 3, Goldman 3, Aflac 3, California 3, America 3, Mr. Cramer 2, Jpmorgan 2, Nike 2, Cisco 2, Kevin 2, Goldman Sachs 2, Jim Cramer 2,
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  CNBC    Mad Money    News/Business.  (2013) New.  

    January 16, 2013
    6:00 - 7:00pm EST  

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time for the final trade. mike? >> i think the panic and expectation in apple's earnings is little overdone. i would buy calendar specifically at the money, april. >> tim? >> brazil's erj is not boeing. long-term buy. >> i want to short xly and stay shorted. >> aarkaren? >> i like mcgraw-hill. >> grasso? >> i'm long google. >> all right, i'm melissa lee. thank you for watching. see you tomorrow at 5:00 for more "fast money." don't go anywhere. "mad money" with jim cramer starts right now.
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i'm jim cramer and welcome to my world. you need to get in the game. stearns are going to go out of business and he's nuts, they are nuts, they know nothing. i always like to say there is a bull market somewhere. "mad money," you can't afford to miss it. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i'm just trying to save you some money. my job is not just to educate, but i'm entertaining, coaching and teaching tonight. so call me 1-800-743-cnbc. does the market not understand the gravity of a u.s. government shutdown? does it not comprehend it's not merely the nation's credit rating that's at risk from the debt ceiling debacle? but the full faith and credit of the republic itself? how long can we shrug off this
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grand canyon plunge that's coming? as we did again with another benign day, dow tipped 29 points, and nasdaq advance advanced .22%. this is behavior. is the market actually smarter than you and i think? i'm starting to believe the latter and tonight i'm going to tell you why. first, i don't necessarily want to invest in a country if it doesn't pay its bills. dead beat country, but i don't mind if it can't pay for its bills but for a moment refuses to. it must honor its debts no matter what. i believe passionately that we will pay debts in a timely fashion. congress is supposed to hold the purse strings, but the american people are less stupid than washington thinks they are. they lived through another one of these scares. that time, we were frightened, frightened about what a ratings agency downgrade would mean to the country. do you remember where you were
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that weekend when we got the downgrade? i know where i was. philadelphia eagles training camp. and the news of the downgrade hung over players and fans as if a nation had committed treason and therefore we immediately would see sky-high interest rates, making their houses unsaleable, the undrafted free agents, they were totally freaking out. yet, in fact, it heralded one of the greatest rallies in u.s. history, with interest rates that fell to rates that seemed prosecute posterous. things are different now. and it's not just because the eagles landed oregon's chip kelly. which just about made my year as a season ticket holder. the thing we feared the most, wasn't fear actually, but it was kind of. the down grade didn't matter, and the idea that the government will stop paying its bills for an interest for long stretch, please. i mean, people need to run for office in congress. they need to run for office.
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they need money. you won't win an election if you are responsible for stopping even a week's worth of social security checks. there won't be any wrangling. pin the tail on the gop and despite the party, within the gop, it's vital donors not be turned off. that's what business of politics is all about. the gop is no longer beholden to big corporations and is embracing and being supported by small businesses. enough. someone who has been a small businessman all his life, started many businesses, let me say these articles are stupid and nonsensical. here is the dirty little secret. all of us who tried our hand of starting a small business, i wish it would get into the media's conscious. small business needs big business to do well. if it's going to do well itself. big business hires, grows, puts people to work. small business caters locally to the big business. let me explain how local businesses would love to be as
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independent as some pomp particulars seem to believe. we all know better. the summit in new jersey. a bunch of guys. we survive because big business in this case, selgean is headquarters down the street. what would make us thrive? merck moving its business there too. everyone at the summit elks knows we are all beholden to big business to make our small ones strong. that's how it works. you got to stop the rhetoric, politicians. go work in the inn. george mcgovern recognized what it was like. neither big nor small business wants a government shutdown, plus the other big voting contingent. the elderly. they are not cool on missing that social security check last time i looked. you will make a bargain. one more reason why it won't be such a vicious showdown. we act as if the democrats are the parties of tax and spend, the republicans are the party of
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borrow and spend. did you see any evidence of the bush administration that there was any entitlement cutbacks? i don't believe most republican politicians have discipline when it comes to spending or they wouldn't have been nearly as profligate, give me a break. this won't be much of a show count. republicans -- come here, come here, the republicans, they don't want to cut spending either. embarrassing the president is one thing, but actually offering plans to cut medicare, social security, defense, oh, please. i'll believe it as i see it, even though i think it's important that it be done. both parties guilty of too much spending. the democrats witt vitriolic, t to make money to pay for it. and enough politics. the american investor figures out we're pretty long through the united states of three-ring circuses. the most important spur for
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investment is confidence. three issues that held up business formation and stock investing for a long time. put a drag on it. uncertainty of the presidential election, uncertainty of the fiscal cliff and the sequester debt ceiling argument. two big bad events, only one more station on the gauntlet. it simply isn't as scary or meaningful as when it comes to the stock market or new business formation. sorry, it won't sell as many parents, and it just won't. smart investors are making a bet they can't wait for the third of the three washington incursions to be finished. once a big bad event is passed, the rick of responding floods in. now we're about to finish the third leg of the political steeplechase, and we will be given a level of certainty. you want to wait for those people to come in? it could be investing nirvana, a guy in brooklyn, cramer, smart guy. scared us with the election, scared us with the fiscal cliff
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and now scaring us with the debt ceiling. what are you going to scare us with about washington after that's over and you faked everyone out and got them to sell? i rolled my eyes, i defended myself, saying all three of threes issues are and are worthy of worry and i told people to stay the course, like he could care. he said, again, what washington horror story are you going to gin up, cramer? and i said impact on spending of higher taxes, coming affordable care act, instead i said wisely no, that's it. maybe it would be good if you focused on the stock market again. ouch! but it did get me thinking. we have seen bank stocks go higher, today, last week, putting washington behind them. and it didn't look like the bank killing died, much impact on goldman sachs or yp morgan. high-end retails rally, and it incurred, and we keep acting as it has, and no increacessation e
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buying according to lennar, and the sandy bailout will kick in by the second quarter, home depot will fly. we're through two of the washington stumbling blocks, the election and fiscal cliff. one more leg to go. debt ceiling. the last obstacle may be the least dangerous, judging by what happened last year with the overly dreaded debt downgrade and what's happening now. take your cue from the markets. here is the bottom line. washington fright fest is almost over, people. maybe time to break out the dr. strangelove handbook and learn how to stopped worrying and love the irrelevant gridlock that will soon face, once the debt ceiling is raised, and politics cease to be the biggest factor in our investment thinking. kevin in washington, kevin. >> caller: booyah, mr. brilliant one. a quick question. you know, with the higher cost of foods and energy, and the
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lower incomes we're all expecting, the average working person, do you think we can return to the dependence on our credit cards? if we are, is master card a good buy? >> i like master card, my charitable trust owns it, ebay, that stock soaring in afterhours. master card is a paper to plastic worldwide trend, not so much we get hooked in debt or not. and i've seen a lot of household debt statistics which show how low we are in debt. think we're just fine on the issue. a lot of things i'm scared about. it ain't one of them. let's go to laura in virginia. laura. >> caller: hey, jim. thanks for my call. booyah, and my question is the speculation for the decline and demand on -- iphone. hello? >> i hear you, laura. >> caller: the apple iphone sales. i wanted to know what does that
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have to do with sirius logic? >> sirius logic, a great company. they do the sound for the iphone and if people feel they are cutting back for orders on apple, i don't know what the story is. they will cut back on sirrus orders. they go down. i want to clear up something. a real misinterpretation about me and apple. my charitable trust owns it, it's been killing my charitable trust. fortunately, we're doing okay. it's the reason why a source of great angst, so when people say jim hits apple lower, why would i want my charitable trust to have less money? i gave away $1.5 million with the charitable trust. i would do anything to give away more money. why would i want to make less and give less to charity? stop with the hectoring on apple. enough, enough. this market is smarter than we think. washington stumbling blocks almost behind us.
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stop worrying, embrace opportunities, and don't freak out. keep your head cool, make some money. "mad money" will be right back. >> coming up, can you dig it? instead of digging, investors are dumping joy global as concerns over china put the stock down in the dirt. are they new in the sights of the suitor, and is it time to scoop up shares? cramer is going straight to the source in his exclusive with the ceo. later, dollar store debate. discount dollar shops have been printing money as consumers search for deals, but recently lost for steam. americans start to feel paychecks pinched, could these stocks come back to favor? cramer conduct a price check, just ahead. all coming up on "mad money." don't miss a second of "mad money" follow @jimcramer on twitter. tweet cramer at #madtweets.
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send an e-mail to madmoney@cnbc.com. or call 1-800-743-cnbc. miss something? head to madmoney.cnbc.com. ♪ [ male announcer ] don't just reject convention. drown it out. introducing the all-new 2013 lexus ls f sport. an entirely new pursuit.
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this market has a real bob dylan feel to it. we are in a times, they are a changing move moment. right now 2012 loser are looking like 2013 winners. we ran kicking and screaming from any stock that had major exposure to china. china is reaccelerating and those industrials are coming back with a vengeance. tonight, i want to talk to you about the company that literally on "mad money" called the bottom in china, right on this show. joy global, the maker of mining equipment. back on september 13th when things were looking grim, joy grim's ceo came and said he saw a turn in china, based on
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electricity usage data he keeps a close eye on the chinese. since then, china's rebound has become apparent to evident. and on december 12th, they had stronger than expected revenues, 19.4% year over year. the estimates for 2013 could be too low. that's my view. joy global, among the worst performers in the s & p 500 last year. in 2013, could be among the strongest performers in the s & p. they gave a 20% gain since we spoke to mr. sutherland in september. let's check back with the bankable president and ceo of joy global to get a better sense of where his company is headed. welcome back to "mad money." >> thank you for having me. >> you were saying, yes, after much prodding, because of electricity usage, we've seen the bottom in china is that i a
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curved bottom or are we about to see a "v" recovery? >> we have seen steady improvement since that time. as you and i talked last time, we track a lot of things that are highly correlated to economic performance. electricity demand year over year, continued to improve, november was up almost 8%. we see steel production improving, and its november numbers above year-to-date average. we look at other factors like truck haul volumes and those things up, export orders in china were up 14% in december. we are seeing real significant improvement in a lot of different indicators that we look at. that are highly correlated to economic and industrial growth and into the demand for commodi commodities. >> what is the lag between the turn around and when you think that the order book is going to show the kind of robust nature we had a couple of years ago?
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>> if i can sort of break this down. two pieces. two elements to this. one, that in addition to the improvement we've seen in china, one of the real under lying stories we have in china is a restocking phase, china has in 2012, particularly in the second half, really reduced their stock levels down quite significantly. we see the power -- the utilities -- independent power producers have reduced the inventories they carry of coal from 31 days to 18. steel mills have reduced their levels of inventory from met lurge call coal from 18 days to 12. those level will have to be reapproximate men ished ownn to of demand. we still have supply-to-demand where supply is still in surplus right now. as demand improves, that will begin to change, but it will
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take some time for that to change. if the trends continue the way they are going and we believe they will, we should start to see improvement in the order rates, but probably not until the second half of 2013. our customers are more cautious than they've ever been, they will be much more methodical, and you won't see a lot of interest to jump the gun and do something too early. so there are early signs, you have to be patient to see the results of those, but certainly the second half of 2013, we should start to see the china improvement translate to improved order rates as we look at it from our business standpoint. >> has the u.s. stopped going down? >> the u.s. is getting better. we've gone from coal losing share to natural gas. natural gas prices have begun to move up, coal has gained share back. coal saw 31% share power generation in april. back up to 39% now. not what it was before now, but
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a large portion has been gained back. we still believe that gas is going to need $4 to $4.50 to justify drilling programs to replenish the gas supply, so there is a replacement cost higher than today's price. stockpiles are down, coal production in the u.s. is running down year over year by 7%, but only 3% in the fourth quarter. a lot of decline is behind us and we're seeing markets, seeing markets in closer balance, and that's a good sign for us. our u.s. customers continue to invest on mine projects to bring on new mines to rebalance portfolios, to improve the technology that they have in their mines to lower the unit cost of production. we are seeing investments in the u.s., land acquisition to prb, clear indicator of the long-term potential that our customers see out of that region as well. >> it sounds like no credit problems with any of the
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customers. china turning around. united states stabilizing. 2013 could be a dramatically better year for joy global than 2012. >> it could be a better year. i caution about how quick the turn around is going to occur. customers have i think grown very cautious about journalling the gun. we've seen them do that several times before. 2008, they cut too quickly. 2011, they ramp back up maybe too quick until retrospect. much more cautious, much more methodical. upside in our business. one of the things we've dub that he , we cut the cycles down. today it takes us five months to manufacture a shovel, down from 15 months. our response time is quicker than it was a couple of years ago. we'll see an improvement in the order rate. people willment to see more sustainability in the trends we're seeing out of china before they begin to submit large-scale
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investments on new mine expansion. by the second half, we'll start to see that kind of groechlt. >> thaw, mike. stuck your neck out. china hard landing, called the bottom. great for people, in terms of the shareholder who's watch the show. thank you for coming on the show. >> thank you, jim. >> customers are cautious. customers won't do anything that is a wildly extravagant, given the last two cycles so short. china second half of the year, driver, that means to me the stock is too cheap, joy global. stay with it. stay with cramer. >> coming up, dollar store debate. discount dollar shops have been printing money as consumers search for deals, but recently lost some steam as americans start to feel the paychecks pinched, could these stocks come back into favor? cramer conduct a price check, just ahead.
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i've always had to keep my eye on her... but, i didn't always watch out for myself. with so much noise about health care... i tuned it all out. with unitedhealthcare, i get information that matters... my individual health profile. not random statistics. they even reward me for addressing my health risks. so i'm doing fine... but she's still going to give me a heart attack. we're more than 78,000 people looking out for more than 70 million americans. that's health in numbers. unitedhealthcare.
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try running four.ning a restaurant is hard, fortunately we've got ink.
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it gives us 5x the rewards on our internet, phone charges and cable, plus at office supply stores. rewards we put right back into our business. this is the only thing we've ever wanted to do and ink helps us do it. ever since the great recession got going, the dollar stores have been among the strongest segments in retail. for four years, these companies posted stellar results and it began to look like dollar store names were taking over the low-income world. ory tover the last few months, they have reported quite disappointing numbers.
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since the beginning of december, family dollar is down, dollar general has fallen, an 11% decline. dollar tree has been crushed. this thing, i mean -- since the summer, this stock down more than 25%. since august, falling from $52.38 and change. dismal performance, just dismal and with all the turkish taffy i buy, i could buy thpull this grt of the funk. maybe because i'm only buying mike and not mike & ike anymore. why are dollar stores being crushed? should we expect them to bounce back, or are they finished? drifters going lower? the dollar stores, not a lot of upside. and not too late for you to sell, particularly into any strength. the reason? actually more like reasons, a
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multitude. the trajectory is down right lousy. dollar tree reported that the company beat the streets, same-store sales up 1.6%. 300 basis point deceleration. that's like slamming the brakes on a car going 60. december 11th, dollar general reported, they delivered inline statement store sales numbers. gross margins once you got into the conference call, they suffered, down 11 basis points year over year, the company gave the impression nah the gross margins would remain under pressure through 2013. sell, sell, sell. dollar tree disappointed on sales, on margins, and it makes you feel like this is an industry you can have one or the other. decent same store sales or margins, but you can't be losing on both. and, man, was that negative impression bolstered. we got the family from family dollar a couple weeks ago, i tell you, family dollar story, i
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mean, it was -- >> the house of pain. >> january 3rd. the worst. family dollar couldn't even manage to deliver on earnings. remember, the others -- a 6 cent miss off 75% basis. fdo issued downside guidance. cutting numbers for the next quarter for all 2013. conference call? it was a horror show. like when a stranger calls. except the stranger was family dollar management. it was not a family rated picture. it's not just the quarter was serious subpar. dollar store management had to say about what went wrong. dollar tree blamed the election, higher gasoline prices, blamed the broad macro economic picture for lousy same-store sales. talk about a bunch of bogus alibis. i mean, those are the reasons why we shop at dollar stores for heaven's sake.
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family dollar says they can differentiate because they offer such great values and convenience shopping experience. i could almost buy that if there was any evidence that it was actually happening. dollar stores are getting squeezed by the competition. from companies like walmart, taking share aggressively as of late and drugstores like cvs, house on fire cvs, walgreens, and target. they have acknowledged -- let's put it this way -- that there may be lurking price wars. i think there are price wars galo galore, including tobacco sales. dollar stores up difficult comparisons, bar set high and wall street expects the best from them. in recent months, the bar has been lowered indeed, but it's still too high versus what they are up against. i think they made a lot of smart points why they are struggling. ends of the payroll tax cut hold
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holiday. something dragging down on retailers, and higher payroll taxes, disporngs ately hit low and middle income consumers. customers make 40,000 a year or less. ends of the payroll tax holiday, means a household will have to pay $800 to $1,000 in taxes that they won't be able to spend at the general. these families will have to tighten their belts. since they are more likely to shop at the general than saks, that's bad news. the debt ceiling fiasco, and the negotiation of the budget sequester, we could see actual cuts to entitlement programs in the next few months, at least there will be tons of chatter in the media about it i don't think either the republicans or the democrats have the guts to cut
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entitlements. what does this have to do with the dollar stores? you cut program that help people who shop at dollar stores, you hurt these stocks. the low-ends retail environment is more competitive. they have to become more promotional, code word for more discounts. in order to hold their own, they vo have to put real pressure on margins. the higher payroll taxes on consumers, it's very hard to make the case that dollar stores can be owned here. it's true companies have big long-term growth stories, and they have to expand store base around the country. that's not a reason to buy them as long as existing stores have so much trouble. at this point, dollar stores may be too cheap to go much lower, dollar tree sells 14 times earnings, and when their historical multipliers are higher, however, there is no catalyst that can get that multiple to expand. no catalyst to drive this stock higher, and that makes buying them frankly a big no-no.
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you said to me, jim, give me something in the space. you want something in the space? i say go with cramer fave five below. five for you home gamers. i've been a big fan of this company since it became public in july, and -- philadelphia based and if you got it on the ipo at 17, have you more than a double. congratulatio congratulations. as you can guess from the name, five below is not a cold clothing and everett climbing sporting goods center. it's $5 or less. it's a niche market, and much more than i could pay my kids to go to five below. much smaller than dollar stores. 243 locations only upper event quadrant in the united states, mostly around my house. regional and national groth story in infancy, they could still triple and not have enough stores to handle business.
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five below, announced better than expected numbers. and i think you wait for the pullback, and you know what? maybe you wait -- the company has 7 million share offerings and start on that offering. start a position on that deal. that's a good one. but make no mistake this is the one to own. bottom line, the dollar stores, sadly, crushed. i don't expect them to rebound anytime soon. too many difficulties and no real catalyst to get the stocks moving higher, so forget dollar general, dollar tree and family dollar and if you want to trade downplay, go with the one posting fabulous numbers. go with five below. just like in real life. $5 trumps $1, and five below trumps the dollar stores beneath it. michael in louisiana. michael. >> caller: booyah, jim, in baton
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rouge, louisiana. >> holy cow, lsu. >> caller: actually, mississippi state. >> just so you know, i'm going down to new orleans for? a couple of weeks for guess what? >> caller: mardi gras. >> no, super bowl. >> caller: oh, yeah. >> okay. >> caller: leap frog, top ten toy of 2012. toys r us announced their tablet back in september, there has been a short interest, it's leap pad two and leap pad sold out multiple times over christmas. nice run, do you see the run continuing back up? >> too dicey a stock for me. disappointed so many times. a nice move up. i had take a pass and i'm not going to leap the frog here. >> don't buy here. >> i feel it's gone up enough. let's go to rick in kentucky. >> caller: hey, mr. cramer, how are you? >> i'm fine, mr. rick.
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how are you? >> caller: i'm good. i spoke to you in early december about cabela's, and it's up 7% or 8% since we talked and i've been very happy about that and appreciate your good advice, but i feel like we're in the early inning of this game, maybe third or fourth inning, like their expansion plans, picked a great location here in loveuisville, d they are driven a lot by catalog sales. my question, how far do you think it can go? is this early on in the process? what's your target for that particular stock? >> i've been staying away mentioning it, because it has a lot of hunting -- first, i love. but because of the terrible tragedy in newtown, i felt that cabela's could be hurt. it's a really good investment, and i think you can ride it through. got a dollar and a dream? what i want you to do, take it
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to five below. there is just too much working to get the individual dollar stores, but you know what? this one has a secondary. this one has -- it's begging for you to go inside it and buy something. five below, trumping all the other guys. stay with cramer. coming up, can you handle the heat? cramer gets you fired up for a searing hot lightning round. ♪ ♪ ♪ [ male announcer ] don't just reject convention.
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drown it out. introducing the all-new 2013 lexus ls f sport. an entirely new pursuit.
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it is time, time for the lightning rounds. i take calls and i say buy, buy, buy, sell, sell, sell. and we hear this sound and the lightning round is over. are you ready, skedaddy? let's start with joe in new york. >> caller: joe in garden city. cot, how is it affected by the new tax france is putting in? >> frankly, i'm more worried about what's going on in the middle east. i like the stock, good yield. i think it should be owned. tax or no tax, middle east, those guys good at what they do.
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how you doing? >> caller: a big booyah from florida. >> what's going on, sunshine? >> caller: a called a month ago for cisco. y you told me to buy. now it's 21. you think i should buy? >> i think it's good. a very hard stock. i see the orders coming from the telco ies, so my charitable trust pulled the trigger, bought cisco. i think it will go to 24. sally in california. >> caller: a big booyah to you from california. can you tell me about anteras pharmaceutical. ants. >> the injectables, very competitive. not a believe every or buyer of that particular industry, not that crazy on the stock. let's go to drew in california.
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>> caller: dr. cramer, l.a. king stanley cup champ ba ba booyah to you. >> what's up? >> caller: thank you for getting be mac me back in the game in 2012. chesapeake, chk. >> a hard one to own frankly. i'll tell you why. my trust owns southwestern energy, which i think the ceo will tell you, a darn good company. natural gas prices won't go up i feel. and i worry about the fact that that stock has too much natural gas exposure. chesapeake is only a hold, not a buy. let's go to bill in wisconsin. >> caller: hi, a buckeye booyah to you from wisconsin. >> buckeyes, ohio? okay. >> caller: i'm interesting in snts. >> profile that stock in the first two years of the show and have not looked at that time in
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six years. i have to come back about santerus. i don't know how it's currently doing. let's go to mike in florida. >> caller: jim, booyah, thank you for taking my call. >> you're welcome. >> caller: thank you. have you been really helpful to a new investor and made me some money. >> @jimcramer, always a debate if i'm a fool a chahrleton. >> caller: i'm holding emc corp. >> four downgrades, the last one shook me out from the charitable trust. i feel like it's on shaky ground to begin with and emc is even shakier. too many down grades, i don't want you to own it. that is the conclusion of the lightning round. >> the lightning round is sponsored by td ameritrade.
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coming up, you plan, you play, you try to be perfect. but can your strategy stand up to cramer's test? call, e-mail, or twee tweet @jimcramer to find out if your portfolio has what it takes at am i diversified? y. joe doesn't know it yet, but he'll work his way up from busser to waiter to chef before opening a restaurant specializing in fish and game from the great northwest. he'll start investing early, he'll find some good people to help guide him, and he'll set money aside from his first day of work to his last, which isn't rocket science. it's just common sense. from td ameritrade. with multiple lacerations to the wing and a fractured beak. surgery was successful, but he will be in a cast until it is fully healed, possibly several months. so, if the duck isn't able to work, how will he pay for his living expenses? aflac. like his rent and car payments? aflac. what about gas and groceries? aflac.
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cell phone? aflac, but i doubt he'll be using his phone for quite a while cause like i said, he has a fractured beak. [ male announcer ] send the aflac duck a get-well card at getwellduck.com.
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at a dry cleaner, we replaced people with a machine. what? customers didn't like it. so why do banks do it? hello? hello?! if your bank doesn't let you talk to a real person 24/7, you need an ally. hello? ally bank. your money needs an ally.
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when i tell i think you should own a stock, that doesn't mean you should throw all of your eggs into that one basket. even if you are almost positive if it goes up. because diversification is the only free lunch in this business, which is why, of course, we play am i diversified every week. you by this time know the drill. call me, tell me the top five holdings, and i tell you if you are diversified enough or you need to go back to work. i can't stress how hard it, even in a soft market. let's get started with a tweet. yes, @jimcramer, someone went on, didn't yell at me. @roymessaros, ph.d. am i diversified? apple, cater peller, celg, gild,
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yum? let's go to work here. we have a high-quality problem. here we go. caterpill caterpillar, industrial machinery company. apple, terrific company. there i said it @jimcramer twitter. why would i want it to go down? my charitable trust owns it. yum, restaurant company. and here is the problem. have you two of the greatest companies in the world. celgean and gilead. i am going to swap out cgln and keep gilead. and you know what we're going to swap? we're going to put in nike. nike. i'm not worried about -- i was worried about chinese for a second. you know, i am worried. that's a mistake. let's put in ross stores. get a retailer in there. a little just kind of mix it up. a little. i have ross stores, stephanie,
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action links, thinks it's going to go up. >> caller: jim, a big gratitude booyah. >> i'm liking that. you're welcome booyah back at you. >> caller: thank you. i started listening to you about a year and a half ago while i was on unemployment, and anyway, here is my top five from my roth ira. apple, aapl. analy, nnly. i'm concerned about that one, and wondering if i shouldn't buy at&t. >> we'll address that. >> caller: okay. southern copper, that's my foreign play and eli lily, and iau is my gold play. >> man, you're start. i'm glad you're off unemployment and doing some work. fantastic. that's what america has to do. and people come, say they are not looking for work. i've been unemployed, looking for work.
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gold, we think it has a police nah everybody's portfolio. eli lily, high-yielding pharmaceutical. we swore up and down that dividend is good. apple, a terrific company. i don't want it to go down. and analys, and southern copper, mineral, precious metal, pharma, tech, financial, yes. new management, i think that management has been well schooled, no locker concerns, it has come down a great deal. not expensive. johnny in new york. here is johnny! >> caller: a ba ba ba, a ba ba ba, a ba ba ba booyah! >> another person whose day job must be kept. go ahead. >> caller: i do what i can. i just want to say i love you in the morning too, mr. cramer, on "squawk." >> you like that show? i got the night show, the morning show. i could use another three shows. three more shows, and then i might be too busy, including a
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special half hour on espn. go ahead. >> caller: i already don't change the channel. i wake up with you, fall asleep with you. >> get that alarm clock, man. >> caller: i got it. >> i know it's sweeping america. >> caller: my stock is off. qualcomm, gcom. verizon. silver, slv. and here is where i might have some problem. whole foods and hanes select. >> wow. you identified it. you brought it. hey, listen. put it out there. so i have to follow through. first of all, verizon, high-yielding telco. i was worried about the notion qualcomm which sells shichips t into smartphones, and i was going to approve that.
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and silver, poor man's gold. i prefer gold, but it's okay. hain, one of the largest sellers of food, so we'll trade out of hain, and we need a pharmaceutical. we'll go buy some fizer. that's the conclusion of am i diversified.
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more than more than a century ago, the german philosopher frederick
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nitsche said there would be a reevaluation of all values. i think he was right when it comes to bank stonks. the days of the reevaluation of banks upon us. the day that we say it's because of the crummy net interest margin are being put behind us right now. the days when we worried about the government every minute, those are a thing of the past too. it is simply time to make money in the bank stocks and it's important to recognize that because of the difficulties of the previous years and how hard to run the gauntlet of the new regulation. only a handful of companies that can dominate in each space. they will make cha-ching fortunes. goldman sachs, my charitable trust owns, and jpmorgan. goldman dazzled, and not just in that department. it was truly -- i was truly
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shocked at how much money goldman made in equities and fixed income, commodities, currencies, goldman as has a return of equity of 15%. twice of what people thought they would have at this point in the cycle. the shareholders, you, are getting the incremental gains, not the people who worked at go goldman. it was 37.9%, compared to 42% the year before. they are leaving money in the firm, that's shocking. the real story now, not a jerry built one. this is not a hedge fund in drag, the accusation that used to get thrown out all the time before dodd frank. the gains about regular business lines making a huge amount of money and dominating. tangible book, $134 per share and this company deserves to sell at a 24% premium. like the old days, you see them going to the 160s, and straight line off the quarter. i would buy it right here.
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with that amount of cash, they make money every time they turn the lights on each morning. how about jpmorgan. what do you say about a company that does $100 million in revenues because of the whale issue, now put behind them for good. and never mentioned on the show again. the whale is back in the natural history museum. this isn't star trek 4. we aren't out to save the whales, here is what's increa d incredible about jpmorgan issues. and you know what that means? it says are you overly focused on one line, not on the other dozens of lines. the one line which will change as business gets better in america and around the world. and the fixation on the government thing? it's past, over. and jpmorgan will turn a ton of share olders cash soon enough. the rest, about to become passe. it is starting now. today. stick with cramer.
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